Federal Realty Stock Up 18.2% in 3 Months: Will It Continue to Rise?

Core Viewpoint - Federal Realty Investment Trust (FRT) has shown strong performance with an 18.2% stock price increase over the past three months, outperforming the industry growth of 14.4% [1] Financial Performance - For Q2 2024, FRT reported funds from operations (FFO) per share of $1.69, exceeding the Zacks Consensus Estimate of $1.68, driven by healthy leasing activity and revenue growth [1] - The company raised its 2024 FFO per share guidance to a range of $6.70-$6.88 from the previous $6.67-$6.87, with the current Zacks Consensus Estimate at $6.81 [2] Portfolio and Growth Strategy - Federal Realty's portfolio includes premium retail assets in major coastal markets, contributing to its growth potential, with 124 leases signed for 600,669 square feet of retail space in Q2 2024 [2] - The company has acquired two assets totaling 880,000 square feet for $275 million and sold assets in Santa Monica for $103 million to optimize its portfolio [3] Diversification and Development - Federal Realty is diversifying its portfolio by exploring residential and office properties, as well as mixed-use developments, which are increasingly popular [4] Financial Stability - The company maintains a strong balance sheet with $1.3 billion in total liquidity and no debt maturities until 2026, ensuring financial stability [5] Dividend Policy - Federal Realty has a long-standing commitment to dividend payouts, marking 57 consecutive years of common dividend increases, supported by solid operating performance and balance sheet strength [6]